TLDR
- First-quarter operating profit reached €705 million, up 15.6% year-over-year and surpassing the €647 million consensus
- Revenue expanded 14% on a currency-neutral basis, significantly exceeding analyst projections of approximately 9%
- Greater China delivered 17% currency-neutral growth; Latin America jumped 26%
- Gross margin declined to 51.1% from 52.1% due to foreign exchange pressures and U.S. tariff impact
- Annual outlook remains at approximately €2.3 billion operating profit amid tariff and currency volatility
The German sportswear giant delivered an impressive first quarter, with operating profit advancing 15.6% compared to the prior year to reach €705 million. This figure exceeded the analyst consensus of €647 million by approximately €60 million and surpassed Bernstein’s projection of €656 million.
Revenue reached €6.6 billion, representing a 7% increase in reported euro figures. When adjusted for currency fluctuations, revenue expanded 14% — substantially ahead of the roughly 9% consensus projection.
Earnings per share reached €2.70, exceeding the consensus estimate of €2.53.
Chief Executive Bjørn Gulden characterized the performance as “very strong in the current environment,” highlighting widespread demand across product categories and geographic markets.
Performance Drivers Behind the Results
Performance product categories spearheaded growth, expanding 29% on a currency-neutral basis during the first quarter, an acceleration from 27% in the fourth quarter of 2025. Football, running, and training segments all made meaningful contributions.
Apparel emerged as the fastest-expanding product category, surging 31% currency-neutral to reach €2.4 billion. Footwear advanced 4%, building on 17% growth during the comparable quarter last year.
CFO Harm Ohlmeyer highlighted the company’s strategic decision to accelerate World Cup inventory shipments as a significant factor behind the quarterly performance. This tactical move helped enable the 14% growth rate.
The running segment received additional momentum from the London Marathon, where Kenyan runner Sabastian Sawe made history as the first athlete to complete an official race in under two hours — wearing Adidas footwear.
Direct-to-consumer channels expanded 22% on a currency-neutral basis. E-commerce climbed 25%, while company-owned retail locations increased 19%. Wholesale channels posted more moderate 8% growth.
Geographic Performance Analysis
Latin America topped all regions with 26% currency-neutral expansion. Japan and South Korea followed with 23% growth, while Greater China delivered 17% — outpacing Bernstein’s 9% estimate by 800 basis points.
North America returned to double-digit expansion at 12% in constant currency terms, though currency translation reduced this to just 1% growth in euro figures.
Europe, the company’s largest market generating €2.09 billion in revenue, expanded 6%. Gulden observed that certain Middle East markets experienced sales declines related to the Iran conflict.
Gross margin compressed to 51.1%, down from 52.1% in the year-earlier period. Currency movements and elevated U.S. tariff expenses more than offset benefits from improved full-price selling and favorable product mix.
The company estimates the combined impact from tariffs and currency fluctuations will reduce full-year 2026 operating profit by approximately €400 million, with the most significant impact concentrated in the first half.
Despite the robust first quarter, the company maintained its full-year outlook unchanged. Management continues to project high-single-digit currency-neutral revenue growth and operating profit of approximately €2.3 billion for 2026 — roughly 5% below analyst consensus expectations.
This guidance suggests a marked deceleration throughout the remainder of the year, with second through fourth quarter operating profit tracking well below current Wall Street estimates.
The company also unveiled a share repurchase program of up to €1 billion for 2026.
Gulden identified increasing promotional activity in lifestyle footwear as a potential concern, emphasizing that managing product allocation to retail partners is critical to maintaining pricing integrity.
